From: Rabbi Moshe Sofer
To: Rabbi Shalom Fiorda
The Chasam Sofer concurs that "relatives" in a charitable bequest should be defined by common parlance as extending to the fourth degree in the fourth degree (revi'i b'revi'i), since a donor leaving 500 gold coins could not have intended so large a sum for only two or three people. Self-supporting individuals without capital qualify as "poor" for this purpose. Funds seized from heirs for an unfulfilled charity pledge must be returned because no formal earmarking occurred, making the tovas hana'ah principle of CM 276 inapplicable.
Source: Shu"t Chasam Sofer CM §127